hard · Private Equity & LBOs
Consider a European-style waterfall distribution for a fund with $1B in contributed capital. The fund distributes $2B to investors at the end of year five. The agreement specifies an 8% preferred return (compounded annually), a 100% GP catch-up, and a 20% carried interest.
What is the total carried interest distributed to the General Partner (GP)?
- $106.1M
- $400.0M
- $117.3M
- $200.0M
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